NCS Wins Department of Labor Systems Integration Project

Business Wire, Sept 13, 1999

MINNEAPOLIS--(BUSINESS WIRE)--Sept. 13, 1999--

National Computer Systems, Inc., (NCS) (Nasdaq:NLCS) announced today that the Department of Labor Pension and Welfare Benefits Administration (PWBA) has selected NCS to develop and operate the Employee Retirement Income Security Act (ERISA) Filing Acceptance System (EFAST), which collects data regarding employee benefit and retirement plans. The total value of the contract is approximately $60 million over seven years.

The EFAST contract, initially awarded in September 1998, included a base period during which PWBA evaluated pilot systems from NCS and a competing contractor to determine "best value" to the government. NCS and its subcontractor Northrop Grumman Corporation developed an integrated, image-based workflow control system using the latest proven hardware and software technology to streamline and enhance the existing paper-based process to a digital solution. After the competitive pilot period, PWBA selected NCS' processing system.

EFAST will capture financial and benefit plan data as required by ERISA and the Internal Revenue Code. The information is used by the Department of Labor, the Internal Revenue Service, the Social Security Administration, and the Pension Benefit Guaranty Corporation to monitor and protect the benefit plans of some 200 million participants and beneficiaries. EFAST will process approximately 1.2 million forms filed annually. A key component of NCS' EFAST system is the capability to allow all filers to submit their forms electronically, which will save time and reduce paperwork.

"This new system upgrades our technology capabilities to meet the challenges of the future," said Alan D. Lebowitz, the pension agency's Deputy Assistant Secretary for Program Operations. "EFAST makes paperless electronic filing of Form 5500s a reality, which will result in lower costs and greater service."

"The Department of Labor based its decision on the quality, timeliness and reliability of our system," said Russ Gullotti, chairman, president, and chief executive officer of NCS. "Their selection of NCS demonstrates their confidence in our ability to manage complex system integration and large-volume data capture and management. We are extremely pleased to be partnering with them to help secure the health and retirement benefits of millions of Americans."

NCS is a global information services company providing software, services and systems for the collection, management and interpretation of data. NCS (www.ncs.com) serves important segments of the education, testing, assessment and complex data management markets. Headquartered in Minneapolis, NCS has 4,200 employees serving its customers from more than 30 locations worldwide.